EPF, PNB MAY NET RM5B IN DIVIDEND WINDFALL
They are expected to gain from top four lenders’ generous payout this year
THE Employees Provident Fund (EPF) and Permodalan Nasional Bhd (PNB) are expected to net dividend windfalls of close to RM5 billion from their shareholdings in top four banks in Malaysia.
This is based on the financial numbers announced by the banks and analysts’ estimates.
PNB is expected to receive a total dividend of about RM3 billion from Malayan Banking Bhd (Maybank), RHB Bank Bhd and CIMB Group Holdings Bhd.
EPF, on the other hand, may receive some RM1.8 billion in dividend from the three banks and Public Bank Bhd.
PNB has the largest stake in Maybank at 45.55 per cent. It also has some interests in RHB (8.50 per cent) and CIMB (three per cent).
EPF has stakes in all four banks, with the largest shareholding of 40.62 per cent in RHB, followed by CIMB (13.84 per cent), Maybank (12.85 per cent) and Public Bank (11.77 per cent).
Stock market analyst Nazarry Rosli said the generous dividend payouts showed that local banks were in a healthy condition and willing to share their good earnings with shareholders.
“This will also make their share prices more stable as the big institutions are expected to hold to their portfolios in these banks,” he told NST Business.
Both Maybank and RHB posted record net profits last year. They also expect to maintain the momentum this year. As a result, the former was generous in its dividend with a RM6.3 billion payout, while the latter has raised its dividend policy ratio to above 30 per cent of its net profit.
RHB will be paying a 36 per cent dividend this year, the highest since 2003.
Public Bank’s net profit came slightly below estimates last year, but it has announced a total dividend of RM2.7 billion, representing a 47.9 per cent payout ratio.
CIMB Group, which is set to announce its 2018 financial performance today, may announce a dividend payout of RM2.42 billion, according to Bloomberg, based on an estimated net profit of RM4.75 billion and a payout ratio of 51 per cent.
EPF has RM833.76 billion worth of total assets under management. Its largest equity exposure is in the financial sector.
The retirement fund’s top holdings, based on current market value, are in Maybank, Public Bank, Tenaga Nasional Bhd, RHB and CIMB.
Meanwhile, PNB invests in the local stock market and public equities through Amanah Saham Bumiputera, Amanah Saham Wawasan 2020, Amanah Saham Malaysian and Yayasan Pelaburan Bumiputera, among others.